A COMMON THEME THROUGHOUT CONFERENCE MEMBERS' STATEMENTS IS THEIR SHARED CONCERN THAT THE DOCTRINES OF FEDERALISM AND SEPARATION OF POWERS REMAIN UNALTERED. ALTHOUGH CONFERENCE MEMBERS ADMIT THAT THE STATES NEED FEDERAL FUNDS FOR EXPANSION, IMPROVEMENT, RESEARCH, AND COORDINATION, THEY REAFFIRM THE TRADITIONAL INDEPENDENT ROLE OF THE STATE COURT SYSTEMS. CONFERENCE RECOMMENDATIONS FOR RESTRUCTURING LEAA ASK THAT 30 PERCENT OF THE FUNDS ALLOCATED TO EACH STATE GO DIRECTLY TO THE JUDICIAL BRANCH, WITH FUNDING ADMINISTERED AT THE FEDERAL LEVEL BY AN AGENCY OUTSIDE THE EXECUTIVE BRANCH. CONTROVERSY IS EXPECTED ON THE ISSUE OF DIRECT FUNDING OF STATE COURT SYSTEMS, WHICH BYPASSES THE DEPARTMENT OF JUSTICE AND STATE EXECUTIVE AGENCIES. MOREOVER, THE CONFERENCE REQUESTS A DIRECT FUNDING ARRANGEMENT FOR ASSISTANCE IN THE AREA OF CONSUMER COMPLAINTS. THE PROPOSAL, AS FORMULATED IN SENATE BILL 957, INVOLVES EXECUTIVE BRANCH AGENCIES AND RAISES THE QUESTION OF SEPARATION OF POWERS. THESE ISSUES ARE STILL IN THE PLANNING STAGES, AND THE CONFERENCE MEMBERS WANT TO TAKE PART IN A COOPERATIVE FEDERAL STATE EFFORT FOR THE IMPROVED ADMINISTRATION OF JUSTICE IN ALL COURTS. THE CONFERENCE'S POLICY GUIDELINES CONCERNING FEDERAL FUNDING ON STATE COURT PROGRAMS ARE OUTLINED. (MRK)